Market Size of UAE Transportation Infrastructure Construction Industry
| Study Period | 2020 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2020 - 2022 |
| CAGR | > 5.00 % |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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UAE Transportation Infrastructure Construction Market Analysis
The UAE transportation infrastructure construction market is expected to register a CAGR of more than 5 % during the forecast period (2023 - 2028).
- COVID-19 impacted the transportation infrastructure construction market. The impact is in direct and indirect ways, such as reduction in transit services, slowing down of construction works due to social distancing, and disrupted supply chain. However, the sector is recovering and focusing on developments.
- The UAE boasts one of the most advanced transport and infrastructure facilities in the region. From roads to the metro to marine transport, it is home to world-class amenities that support the growth of the economy and the development of business and tourism in the country. Moreover, the transportation infrastructure facilitates the movement of public goods in the country.
- Furthermore, an increase in urban mobility creates demand for the construction of more transportation projects. The transportation infrastructure is driven by modernization, which involves reforming railways and improving and rebuilding roads, bridges, airports, etc. This factor resulted in uninterrupted transit and freight services directly contributing to the region's economy.
- UAE in September 2022, announced a 10-year future development plan for the federal road sector, valued at approximately AED 5 billion (USD 1.36 Billion). Announced by the Ministry of Energy and Infrastructure, the plan aims to meet the needs of the various regions of the UAE, keeping pace with the rapid growth witnessed by the country, enhancing the quality of life, and building infrastructure. Moreover, the 10-year plan will include the development of a network of arterial roads linking the regions of the country to each other.
- Last year the Crown Prince of Ajman, Sheikh Ammar bin Humaid Al Nuaimi, announced an AED102 million (USD 27.77 million) package of infrastructure development projects in the northern emirate. The growth of this market will be driven by the government's effort to build a sustainable transport system. The Traffic and Transportation Plan 2030 is expected to accelerate new public-private partnership projects in the sector over the forecast period.
